FINANCIAL STATMENTS OF SOLE PROPRIETORSHIP
This query is : Resolved
18 April 2021
sir in sole proprietorship, we say interest on capital. but as business and businessmen are same as per law, so why to allow ioc, salary, I'd, and other as these get deduced form profits and get added to capital. in a way profit is added to capital. sow hy to reduce profit from these expenses and then add it to capital in way if it is not deduced it will go to profits which will ultimately increase profit.
18 April 2021
For sole proprietorship interest on capital and salary not allowed.
18 April 2021
SO SIR IS IOD LEVIED BY BUSINESS FROM OWNER....
18 April 2021
SO SIR WHY IN PARTNERSHIP ALSO WE GIVE SALARY, IOC, IOD AND OTHER THINGS TO PARTNER EVEN IF PARTNERSHIP FIRM AND PARTNERS ARE THE SAME
18 April 2021
In partnership firm is taxed separately at 30% on profit earned. Salary and interest paid to partners taxed in the hands of partners at slab rate.
in the case of prop only single taxation at slab rates.
in the case of prop only single taxation at slab rates.
18 April 2021
SIR I DIDN'T GET WHAT U ARE TRYING TO SAY
18 April 2021
In partnership firm and partners are taxed. salary and interest deducted from firm and taxed at slab rate in the hands of partners.
Prop only individual is taxed at slab rates. ( If salary and int paid same will be added and taxed on prop)
Prop only individual is taxed at slab rates. ( If salary and int paid same will be added and taxed on prop)
18 April 2021
But sir as partnership is not a separate legal entity the provider of finance I.e. partner is as same as user if finance I.e. firm.. so it should be allowed and same appliees to salary as both employer and employee is same
18 April 2021
For the purpose of taxation firm and partners are separate entity and taxed differently.
19 April 2021
Yes sir I understand this that as per income tax you are talking about but see as per law they are not separate legal entity so why to give them the IOC salary Iod and other
19 April 2021
Partners work full time for the firm so they have to take salary for the personal expenses. One partner put only money and take interest and other partner will be working partner take salary.
Capital introduced by the partners may be different, so they take interest based on amount invested. one of the partner may be non working partner for him salary will not be paid.
Capital introduced by the partners may be different, so they take interest based on amount invested. one of the partner may be non working partner for him salary will not be paid.
02 May 2021
SO SIR IT MEANS THAT THESE ARE APPROPRIATIONS AS THEY GET TO COMPENSATEW OR THIER WORK AND TIME..SO IN SHORT WE CAN SAY THATY IT IS JUST ANOTHER NAME GIVEN TO TAKE PROFIT FROM FIRM IN THE FORM OF IOC AND SALARY.. BUT IN CASE OF LOAN GIVEN BY PARTNER TO PARTNERSHIP FIRM, SINCE PARTNERSHIP FIRM IS NOT A SEPRATE LEGAL ENTITY, SO IN SENSE PARTNER IS GIVING LOAN TO HIMSLEF AS PARTNERSHIP FIRM IS NOTHING BUT PARNTERS.. SO HOW IS THIS POSSIBLE???
02 May 2021
Firm is not a legal entity but it's a separate entity having separate PAN. So loan can be given.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Applicable TDS for Purchase of Flat from NRI
- Claiming exemption of perquisite for employee-owned car under New Tax Regime in ITR-2
- Gift of mutual fund units to daughter
- Under construction property in ITR
- Not able to file ITR
- Building tax payment deduction in rental Income
- Reporting of STCG on Property in ITR
- Upload Level ValidationITR3Category of Defect B/D
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
